If you are interested in investing in stocks, here are some tips for you.
1. Clear your debts or Credit Card bills before you invest in stocks, MFs or any thing.
2. Start saving today, not tomorrow.
3. Fore-see tomorrow. Latest technology will always have demand. You have to invest in those stocks before every one else knows about them. This happened with IT stocks in 1995-2001, Aqua stocks in 1997-2000, Mobile Communications in 2001-2003. Think of technology or company which will have growth tomorrow.
4. Invest for long-term, short-term investment is too risky. Don't bet your hard earned money in intra-day trading.
5. Go against the market. Always know that when all the general public is buying a stock, there is a big bull broker selling the stock. When all the people are selling a good stock, there might be some one accumulating the stock.
6. Always rely on fundamentals of the company. Research the products of the company and demand for them. This is very simple. Suppose you have three friends doing three different businesses and you want to invest 1 crore in any one of them. Very simple, you will invest in the business that has demand, customers and good management. Same principle should be followed in the case of buying stocks.
7. Diversify your investments. Don't invest all your money in one sector. Choose three best companies in three different sectors and invest in them.
8. Follow Systematic Investment Planning (SIP) for investing in stocks. This reduces your risk.
9. Don't panic. After you invest in fundamentally strong stocks don't worry about the stock price. Hold it for long-term.
10. Don't look at the price of a stock after you sell it.
11. Don't watch CNBC for stock recommendations. Never, Never believe in others' recommendations. If you are prone to buy stocks what other say, you are unfit to trade securities. Better invest in MFs.
Like this post? Don't miss another. Subscribe now!
Post a Comment
If you like this Post , then please Link me back